Amends TCA Section 4-29-243; Section 4-29-244; Section 10-7-504; Title 64; Section 67-5-502 and Section 67-5-505.

This bill establishes a regional development authority to exercise various powers related to the West Tennessee megasite. ESTABLISHMENT OF MEGASITE AUTHORITY The Tennessee Regional Megasite Authority Act of 2007 authorizes the establishment of a regional authority to acquire land, improve, finance, operate, maintain, and market a megasite. Generally, in order to qualify as a megasite, an area must be at least 1,000 acres and be certified as suitable and available for development for significant economic and industrial investment. Present law authorizes the commissioner of economic and community development to approve the process for certification of a megasite. Present law requires that a megasite be administered by a regional megasite authority, which may be incorporated by: (1) Incorporators who are designated by the governing bodies of counties and incorporated municipalities that elect to participate in the authority; or (2) The commissioner of economic and community development, or the commissioner’s designee, acting as incorporator. According to responses provided to the government operations committees of the senate and the house of representatives for purposes of conducting governmental entity review, the Memphis regional megasite authority was created in 2009 with the department acting as the incorporator and a board of directors being appointed accordingly. The Memphis regional megasite authority is presently scheduled for termination on June 30, 2020, unless extended by the General Assembly. This bill establishes the megasite authority of West Tennessee as a regional development authority to administer a megasite property consisting of parts of Haywood County and Fayette County and depicted on the survey prepared by Barron Surveying & Mapping, LLC, Job No. 21-198, dated August 31, 2021, (the "initial megasite property") minus any parcels of land conveyed in fee simple to private entities. The megasite authority of West Tennessee will be administratively attached to the department of general services. The Tennessee Regional Megasite Authority Act of 2007 will not apply to the megasite authority of West Tennessee. The megasite authority of West Tennessee will be scheduled for termination under the governmental entity review laws on June 30, 2023, unless extended by the general assembly. This bill terminates the Memphis regional megasite authority upon this bill becoming a law. BOARD OF DIRECTORS Under present law, when the department is the incorporator for a megasite authority (as it was for the Memphis regional megasite authority), the membership of the board includes the following: (1) The county mayor or a designee of the county mayor of the county in which the megasite is located or, if it is located in more than one county, the county in which the megasite is predominately located; (2) The mayor, or the mayor’s designee, in the incorporated municipality with the largest population in a county in which the megasite is located or, if it is located in more than one county, the county in which the megasite is predominately located; (3) The two speakers appoint two members; (4) The governor appoints two at-large members and three additional members representing and residing in counties contiguous to the county in which the megasite is located; (5) The chancellor of the board of regents appoints one member from the presidents of the community colleges that have a campus within a county in which the megasite is wholly or partially located or within a county contiguous thereto; and (6) The executive director of the development district in which the megasite is located. Under this bill, the board of directors for the megasite authority of West Tennessee will be composed of the following members: (1) Two gubernatorial appointees; (2) One member appointed by the speaker of the house of representatives; (3) One member appointed by the speaker of the senate; (4) The commissioner of economic and community development, or the commissioner’s designee; (5) The commissioner of finance and administration, or the commissioner’s designee; and (6) The commissioner of general services, or the commissioner’s designee. The full text of this bill specifies various procedural and organizational requirements for the board, such as terms, travel reimbursement, selection of officers, establishment of a quorum, and compliance with the open meetings laws. A board member who is not an ex officio member and who is absent from three consecutive meetings may be removed from the board by the governor or by majority vote of the board. Also, the governor may remove a board member for cause. POWERS OF THE AUTHORITY Under present law, a megasite authority generally has powers similar to those of an industrial development corporation. Present law also authorizes a megasite authority to accept aid from any source, provide technical assistance to participating municipalities in planning for the development of the megasite, and (subject to approval of the state funding board) issue bonds. The full text of this bill enumerates 14 powers that the megasite authority of West Tennessee will possess, including a provision that authorizes the authority to perform each act that the board of directors, in its sole discretion, deems appropriate to accomplish the purposes of this bill. This bill does not specifically authorize the megasite authority of West Tennessee to issue bonds. This bill provides that any agreements between the megasite authority of West Tennessee and lessee’s of megasite property regarding payments in lieu of ad valorem taxes (PILOT) becomes a first lien that may be judicially enforced along with 10-percent per annum interest. The authority's records will be subject to the present law requirements for open records, except that: (1) Contracts obligating public funds may not become a public record until executed; (2) Subject to approval of the authority's CEO and the attorney general and reporter, a record may be considered confidential for up to five years if the record’s disclosure or release would seriously harm the ability of the authority to effectuate the purposes of this bill; and (3) All trade secrets received, maintained, or produced by the authority will remain confidential. WATER AND WASTEWATER SERVICES This bill authorizes the megasite authority of West Tennessee to provide water and wastewater services to customers located on the initial megasite property. This bill specifies that the authority will have the obligation and exclusive right to provide water and/or wastewater service to customers located on the initial megasite property for so long as applicable system is owned or controlled by the authority or the state. This bill authorizes the authority to contract with a third party for the third party to provide either water service and/or wastewater service. This bill requires the authority to set and collect non-discriminatory, reasonable rates, and set terms and conditions of service to customers of any water system or wastewater system operated by the authority. This bill specifies that the authority will not be subject to the authority of regulatory boards with regard to its operation of a water and/or wastewater system, except that the authority will be subject to regulation by the department of environment and conservation. CHIEF EXECUTIVE OFFICER This bill establishes the office of the chief executive officer (CEO) of the megasite authority of West Tennessee. The first CEO will be a gubernatorial appointee who serves at the pleasure of the governor and will not be subject to removal by the board. All subsequent CEOs will be appointed by the board and shall serve at the board’s pleasure. CODES, ZONING, AND RELATED MATTERS This bill extends to the state fire marshal exclusive jurisdiction over plans review, permitting, and inspections for, and enforcement of, safety standards for structures at the West Tennessee megasite, including electrical, plumbing, fire protection, and mechanical systems. This bill specifies that the fire safety, electrical, and building construction safety standards established by the state fire marshal under present law will apply to any structures at the megasite. Present law requires the commissioner of economic and community development to consider zoning, among other things, when deciding whether to approve a proposed megasite certification process. This bill exempts the property in the megasite from local land use regulations. This bill prohibits the megasite authority of West Tennessee from permitting within the megasite any noxious use; provided, that recycling batteries or other materials used or associated with the operation of a project at the megasite will not be deemed inherently noxious and may be permitted by the authority. This bill requires pre-approval from the authority before property within the megasite is subdivided for sale or development. Approval by a regional, county, or municipal planning commission will not be required for any such subdivision. This bill authorizes the megasite authority of West Tennessee to assess a civil penalty of not less than $50.00 and not more than $5,000 per day for each violation of the authority's land use regulations. The full text of this bill specifies the review and appeal process for any person against who such a civil penalty is assessed. This bill specifies that any lease of real property, and any amendments thereto, entered into by the authority, and any capital grants and corresponding accountability agreements will be subject to approval by the state building commission. Under present law, when leased property is the subject of a payments in lieu of ad valorem taxes (PILOT) agreement between a lessee and a local government, the property is not assessed against the lessee for property tax purposes. This bill specifies that the same tax treatment will apply when any such property is leased from the state. NOTE: This bill requires the board to enter into a contract with each CEO establishing the "director's" salary and term of office. It appears that the reference to the "director" should instead be the "CEO". ON OCTOBER 20, 2021, THE SENATE ADOPTED SENATE AMENDMENT #2, AND PASSED SENATE BILL 8001, AS AMENDED. AMENDMENT #2 makes various grammatical and stylistic changes and makes the following substantive changes to this bill: (1) Increases the membership of the board from seven to nine voting members by requiring each speaker to make an additional appointment, and commensurately increases the quorum requirement from four to five board members; (2) Provides compensation for appointed board members in the amount of $2,000 per month for the first three years of the authority's existence. After the first three years of the authority's existence, such compensation ceases. The ex officio board members will not receive compensation for service on the board. All board members are eligible for reimbursement of travel expenses; (3) Authorizes the speakers to remove for cause a board member that they appoint; (4) Requires that board actions undertaken other than by rule must be accomplished by majority vote of the board's entire membership rather than a majority of the board members present and voting; (5) Makes the service of the first CEO of the authority, who will be appointed by the governor, subject to the board's pleasure; (6) Prohibits the authority from operating a water system or wastewater system at a deficit after December 31, 2026; (7) Revises this bill's due process provisions concerning civil penalties to require at least 10-days' notice prior to assessing a civil penalty, establishing a 10-day deadline within which a person may petition for review of a civil penalty, granting a petitioner a 45-day period to correct the situation for which the penalty was assessed, and generally shortening deadlines in order to reduce the length of the review process; (8) Specifies that the section of this bill that gives the state fire marshal exclusive jurisdiction over regulation of electrical installations, plumbing systems, fire protection systems, and mechanical systems in structures located at the megasite must not be construed to limit the authority of the board of boiler rules, the elevator and amusement device safety board, or the commissioner of labor and workforce development; (9) Transfers original jurisdiction for judicial review of civil penalties issued by the authority from Davidson County chancery court to Madison County chancery court; (10) Clarifies that the Memphis Regional Megasite Authority will terminate and cease to exist without going through a winddown period on the date that this bill becomes a law; and (11) Corrects the typographical error referenced in the NOTE to the Bill Summary. ON OCTOBER 20, 2021, THE HOUSE SUBSTITUTED SENATE BILL 8001 FOR HOUSE BILL 8001, ADOPTED AMENDMENT #4, AND PASSED SENATE BILL 8001, AS AMENDED. AMENDMENT #4 incorporates the provisions of Senate Amendment #2, with the following changes and additions: (1) Increases the membership of the board from nine to 11 voting members by requiring the speakers to jointly make one additional appointment and adding the governor as a board member, and commensurately increases the quorum requirement from five to six board members; (2) Specifies that the governor will not be eligible for reimbursement of travel expenses associated with being a board member under this bill; and (3) Requires appointed board members to disclose conflicts of interest in accordance with present law that is applicable to members of the general assembly, the governor, members of local and regional planning commissions, and certain other public officials.